Marketplace is an extremely relevant strategy for large companies. This strategy has functions that go beyond extending the reach of a brand, as it allows businesses to strengthen their sales without harming logistics.
What is little known is that industries and manufacturers can also strengthen their D2C (Direct to consumer) strategy without harming their distribution network and other business models that this sector is already used to with B2B (business to business), for example.
These features of selling directly to end consumers are one of the retail transformations that we have followed in recent years. In this article, we will talk a bit about what marketplaces can represent to industries and manufacturers, boosting the sector's online sales.
The potential of the marketplace for industries and manufacturers
With Industry 4.0, technology has become a fundamental part of the production line. However, most of these companies do not want to start their own e-commerce, some due to cost, others due to lack of staff. And so they end up staying out of the digital market.
The marketplace appears as a possibility of sell online and the relevance of this channel has been growing considerably, especially for the D2C market. A study by Ebit Nilsen reveals that in 2018, manufacturing brands had a turnover of R$2.5 billion with online sales to consumers, with a sales volume that grew 43% over the previous year.
With these data we can understand that D2C commerce via marketplaces is relevant and has growth opportunities in the coming years. This is mainly due to the fact that the consumer prefers manufacturers' online stores when buying on e-commerce. According to data from Ebit Nilsen, more than 50% of consumers search for manufacturer stores because they often offer better prices, promotions, and because they already have consolidated confidence in both the brand and the product.
The D2C strategy in the marketplace
We already understand the relevance of the marketplace for direct-to-consumer models, but what are the real benefits of these channels for your strategy?
First of all, the cost reduction for direct sales. In marketplaces, both industries and manufacturers can join these online channels at a low cost. If we make a quick comparison, in marketplaces the direct costs to sell will be related to commission, while when thinking of points of sale such as an own website, it is necessary to invest in infrastructure, advertising and more, things that are already included in the marketplaces.
Secondly, these channels enable Expansion of the brand's digital presence and are financially attractive, especially in D2C commerce, since they allow these companies to advertise on different sites, diversifying sales channels and making them better known on the Internet. This type of exposure results in gains in brand reputation, attraction of new customers, and increased revenue.
The increase in market share is also an interesting benefit in the direct-to-consumer strategy, especially in categories of high average ticket, because they are gaining prominence in D2C commerce. According to the Ebit Nilsen study, the telephone, electronics, and home appliances segments are among the most sought after by customers who want to buy from manufacturers. It is worth remembering that categories with lower average ticket also have high potential to be explored.
Finally, the strengthening of the omnichannel strategy is an increasingly relevant point for retailers. By integrating its online and offline channels, it makes the public have increasingly complete and remarkable experiences.
The closer relationship with end customers is also an advantage. Through online strategies, such as the marketplace, industries and manufacturers that used to have a long way to reach the final consumer have their relationships facilitated and have a greater return on investment.
The role of the marketplace in online retail
We have prepared this e-book in partnership with VTEX, as a basic guide for the implementation of a marketplace, using the technologies of the VTEX platform.
Besides understanding the marketplace concept and its growing role in the online market, we will teach you step-by-step how to start your sales in partner marketplaces and also how to set up your own environment for sales from other sellers.
As you may have noticed, the strategy of using marketplaces only brings benefits to industries and manufacturers. If you like it and want to start changing your business, log on to contact our experts.